Helios and Vitol take control of Oando’s downstream assets

Africa-focused private equity firm Helios Investment Partners is joining forces with Vitol, one of the world’s largest independent energy traders, in paying $276 million to acquire 60% of the economic rights and 51% of the voting rights in Oando Plc’s West African downstream business. Oando plc will retain a 40% stake and use the proceeds of the sale to pay down debt.

Once the deal is completed, the new downstream and retail business will be established as a standalone, independent company and will be led by a local management team. Its assets will include over 400 service stations in Nigeria with supporting infrastructure, made up of 84,000 tonnes of storage and a newly built inbound logistics jetty. The new business will be the second largest downstream fuels company in Nigeria, with a market share of 12 per cent.

The deal is subject to the receipt of regulatory approvals and customary purchase price adjustments.